When NOT to Issue Final Expense

[ruin007]

As I sit here at work waiting for my starter packets to come in from the carriers I contracted with, I was searching the forum for older topics that I may learn some things from. I saw one thread that caused some controversy, and want some opinions please.

There are many people that final expense agents will see that are in their late 50's or so, that would qualify for a regular term policy or universal policy. Are we being ethical by selling them a FE policy at a higher premium? If not, then all is good. If we are, what is the ethical thing to do in the situation?

Should I get conracted with a few fully underwritten companies when this situation is to come up when prospecting?

 

[TDFnCali]

As I sit here at work waiting for my starter packets to come in from the carriers I contracted with, I was searching the forum for older topics that I may learn some things from. I saw one thread that caused some controversy, and want some opinions please.

There are many people that final expense agents will see that are in their late 50's or so, that would qualify for a regular term policy or universal policy. Are we being ethical by selling them a FE policy at a higher premium? If not, then all is good. If we are, what is the ethical thing to do in the situation?

Should I get conracted with a few fully underwritten companies when this situation is to come up when prospecting?

Yep, having 1-2 carriers for a good term policy and some fully underwritten WL like RNA's Essential Life would be good to carry. Most of the ppl under 60 replying to the cards (in my exp) really dont qualify for FU products a lot of times, but they do sometimes. And some need much larger amounts to protect say a mortgage, so having a good term carrier is always good. Im doing a term now with Genworth for over $200/mo...lady needed 200k, 58/smoker. And last month, I sold a lady a 250k term policy...and Ive sold 2 (got an app for a 3rd I cant submit til late May) RNA's Essential Life.

Also, if they only want a small amount, like 5-8k....some of the other products minimum is sometimes too high!

Do the right thing & the $$ will come!

 

[BenS]

Like TD said, not too many will qualify. If they do however, then it can always be an option. Just make sure they know about the paramed process, underwriting, etc.

I had a lady that wanted 100k in coverage, was a non-smoker, no meds, etc. We went through the whole fully underwritten process and 6 weeks later if came back approved at nicotine rates. She then tells me, well I only smoke a few cigs a week! This experience has somewhat soured me on offering this. If I walk into a situation where the people seem fiscally responsible and very serious about it, then I'll consider doing that again. Otherwise, not so sure.

A good target may be somebody that has a UL policy that is blowing up.

 

[ruin007]

Well I guess that my follow up question would be, what would be a few good carriers for me to contract with, and where would I go? I really have been focused on FE and haven't thought any other types of life insurance to sell until today, so any help would be much appreciated.

 

[Rearden]

Andrew, you'll probably run into a minority of cases where you'll want to write a fully UW product, do to the nature of the people we deal with.

RNA has the best fully-underwritten whole life insurance program out there; I have written 2 and both are in underwriting as I type.

 

[ruin007]

Do I have to do anything special to get appointed to sell fully underwritten? How would I go about doing this with RNA? Appreciate the help guys

 

[Rearden]

You can go direct for 105% I think.

Otherwise, contact 360 or Todd King.

 

[rousemark]

Ruin007: Why are you waiting for your start up kits?.. Can you not print off a few initial apps and supplies from the company websites so you can get out and start selling?

 

[ruin007]

I suppose I could, but I'd like to finish out my 2 week notice at my current job out of courtesy. And Dave, when you say go direct, do you mean contact RNA directly?

 

[Rearden]

Yes, you can do that.

However, and others could probably chime in here, it's probably better to go with an IMO, as you won't necessarily have required production goals to raise your commission level (although some IMOs do have that requirement, that you put X amount of business with RNA before getting a raise).